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What is the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex][tex]$\$[/tex]112,000[tex]$[/tex]?

\begin{tabular}{|c|c|c|}
\hline \multicolumn{3}{|c|}{FICA Taxes} \\
\hline & Social Security & Medicare \\
\hline \multicolumn{1}{|c|}{Total Due:} & [tex]$[/tex]12.40\%[tex]$[/tex] & [tex]$[/tex]2.90\%[tex]$[/tex] \\
\hline \begin{tabular}{l}
Employer's \\
Responsibility
\end{tabular} & [tex]$[/tex]6.20\%[tex]$[/tex] & [tex]$[/tex]1.45\%[tex]$[/tex] \\
\hline \begin{tabular}{l}
Employee's \\
Responsibility
\end{tabular} & [tex]$[/tex]6.20\%[tex]$[/tex] & [tex]$[/tex]1.45\%[tex]$[/tex] \\
\hline
\end{tabular}

[tex]$[/tex]\[tex]$?$[/tex][/tex]



Answer :

GinnyAnswer
To determine the employee's yearly contribution to the U.S. Social Security tax on a salary of \[tex]$112,000, let's follow these steps: 1. Identify the applicable Social Security tax rate for the employee. - According to the table, the Social Security tax rate for the employee is 6.20%. 2. Convert the percentage into a decimal for calculation purposes. - The tax rate of 6.20% can be expressed as a decimal: \(6.20\% = 0.062\). 3. Calculate the yearly contribution by multiplying the salary by the Social Security tax rate. - The salary is \$[/tex]112,000.
- The Social Security tax rate is 0.062.

Therefore, the yearly contribution to the U.S. Social Security tax is:
[tex]\[ \text{Yearly Contribution} = \text{Salary} \times \text{Social Security Rate} \][/tex]
[tex]\[ \text{Yearly Contribution} = \$112,000 \times 0.062 \][/tex]

4. Result:
- The employee's yearly contribution to the U.S. Social Security tax would be \[tex]$6,944.00. So, the employee's yearly contribution to the U.S. Social Security tax on a salary of \$[/tex]112,000 is \$6,944.00.

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